Research · Sep 3, 2026
[TTMI] TTM Technologies Thesis 2026: Defense Backlog and Data Center Win Drive Revenue Inflection
TTM Technologies, Inc. FY25 revenue $2.91B (+19%); op income $262M (+126%); NI $177M (+215%); EPS $1.68 (+211%). FCF effectively $0 ($-1M, capex-dominated at $293M). Adjusted EBITDA margin 16.3% (vs 14.7% FY24). Q4 sales $774M (above guided range); non-GAAP EPS $0.70 (in line). Cash flow from operations $63M Q4 / $292M FY. Book-to-bill ratio 1.35 FY (A&D 1.46; RF&S 0.94). 90-day backlog $654.9M. ~80% of net sales related to AI + defense megatrends. Segment performance — Aerospace + Defense: 41% Q4 sales; +5% Q4 / +13% FY; backlog $1.6B. Data Center Computing: 20% Q4 sales; +57% Q4 / +36% FY. Networking: 8% FY sales; +23% Q4 / +43% FY (combining with data center 2026). Medical/Industrial/Instrumentation: 14% Q4 sales; +28% Q4 / +22% FY. Automotive: 9% Q4 sales (expected ~8% 2026). FY26 guide: Q1 net sales $770-$810M; Q1 non-GAAP EPS $0.64-$0.70; full year net sales +15-20% over 2025; SG&A ~8.5% Q1; R&D ~1%; effective tax rate 12-17%. Risks: A&D backlog conversion timing, hyperscaler AI capex cycle, PCB competition (Hon Hai, Compeq, Tripod, Wus, IBIDEN, AT&S, Unimicron), Penang Malaysia ramp, capex cycle duration, geopolitical / China supply chain.